Ether tumbled as much as 9% on Monday, breaking below a key technical support level at $3,600 after hackers drained over $100 million from a major decentralized-finance protocol on the Ethereum network. The sharp drop leaves the world’s second-largest cryptocurrency roughly 25% below its August 22 peak of $4,885, extending a volatile stretch for digital-asset investors.
The latest blow came after the Ethereum-based DeFi platform Balancer suffered a multimillion-dollar exploit — the latest in a series of cyber-incidents and macro headwinds battering sentiment across the crypto market. Analysts said the breach amplified selling pressure already building from recent policy uncertainty and investor risk aversion. Concerns around security and liquidity are re-emerging just as macro conditions turn less supportive.
Shares of crypto-linked companies, including exchanges and mining firms, also fell in sympathy, underscoring the broader caution surrounding digital assets as traders brace for further volatility into year-end.
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The Balancer hack and renewed macro uncertainty have rattled investor confidence across the crypto complex. Ether’s break below $3,600 may prompt further technical selling, while continued Fed hawkishness and risk aversion could weigh on near-term sentiment.
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Ether (ETH) is the native cryptocurrency of the Ethereum blockchain, the world’s leading smart-contract platform that underpins most decentralized-finance (DeFi) and non-fungible-token (NFT) applications.
